TIDMNWG
RNS Number : 5468D
NatWest Group plc
20 October 2022
20 October 2022
NatWest and Vodeno Create Strategic Partnership
NatWest Group plc and the Vodeno Group enter into a Strategic
Partnership to Create Banking-as-a-Service Business
NatWest Group plc ("NatWest Group") has entered into a strategic
partnership with the Vodeno Group (comprising of Vodeno Limited and
its subsidiaries) which will see the creation of a
Banking-as-a-Service ("BaaS") business in the UK. This strategic
partnership will enable businesses to embed financial services
products such as payments, deposits, point-of-sale credit and
merchant cash advances directly in their ecosystem by leveraging
the Vodeno Group's BaaS technology, and NatWest Group's banking
technology and UK banking licenses.
Vodeno Group is a European BaaS provider which combines the
Poland-based Vodeno Sp Z.o.o ("Vodeno TechCo"), a software company
providing its API-based technology platform and the Belgium-based
Aion Bank, which has a banking license covering a range of banking
products, including loans, deposits and access to EEA payment
systems . Vodeno Group is majority owned by Warburg Pincus.
Under the terms of the agreements, a new UK based entity will
combine the Vodeno Group's technological and operational
capabilities and its cloud platform with NatWest Group's banking
technology and expertise, building on NatWest Group's position as a
leading supporter of UK business. Through its business banking app
Mettle, NatWest Group has built a standalone core banking and
payments capability, Vodeno's Group's platform will provide a
channel for delivering these capabilities to BaaS clients in the
UK.
The new UK entity will be 82% majority owned and consolidated by
National Westminster Bank Plc, with Vodeno TechCo holding the
remaining minority interest. NatWest Group will additionally take a
minority interest (initially a 9.9% holding, increasing to 18%
subject to certain conditions and approvals being met) in Vodeno
Limited, which owns 100% of Vodeno TechCo and Aion Bank.
NatWest Group Chief Executive Alison Rose said:
"As a leading supporter of UK business , we are committed to
investing in digital transformation to provide a simpler and better
banking experience for our customers. By entering into this
strategic partnership with Vodeno Group we will be able to m eet
the evolving needs of our business customers as they look to embed
financial products in their own propositions and journeys."
"This strategic partnership presents a strong potential source
of fee income in a growing market, and an opportunity to deliver
sustainable growth by building deeper relationships with our
corporate customers. It also complements our existing investment in
the development of business banking technology within our Mettle
business."
Wojciech Sobieraj, CEO of Vodeno Sp Z.o.o added:
"Consumers require high quality and accessible banking products
that are end-to-end digital, and Banking-as-a-Service is making
this possible. Our fully API-based platform offers a comprehensive
suite of BaaS products that enable brands to 'embed' financial
services directly into their ecosystems to create seamless customer
journeys. We are excited to combine our technology with NatWest
Group to offer the next generation of financial services."
Completion of the arrangements is subject to satisfying various
conditions, including licensing, servicing and other documentation,
and obtaining regulatory approvals (including the UK Financial
Conduct Authority and National Bank of Belgium / European Central
Bank).
NatWest is committed to make in total i) a capped commitment of
c.GBP115m, to enable the establishment of the new UK entity; and
ii) a EUR58m investment in Vodeno Group to acquire an 18% minority
stake, investment in each case subject to certain conditions and
approvals being met.
ENDS
Banking-as-a-Service
Banking-as-a-Service provides corporates and financial
institutions with complete end-to-end banking solutions, allowing
them to embed and sell white labelled financial products
underpinned by a bank's secure and regulated infrastructure
combined with a modern API-driven platform.
About Vodeno and Aion Bank
Vodeno Sp Z.o.o and Aion Bank have combined a modern
cloud-native '360' platform ecosystem, an EU banking license and a
team of banking experts to offer comprehensive embedded financial
services for banks, lenders and merchants across multiple sectors.
From 'smart contract enabled' core banking to accounts, onboarding,
payments, cards, investment and lending solutions, Vodeno Sp Z.o.o
and Aion Bank aim to offer the ability to meet the demands of
regulation while enabling innovation at speed.
For further information, please contact:
Investor Relations
Alexander Holcroft
Head of Investor Relations
+44 (0) 20 7672 1758
NWG Media Relations
+44 (0) 131 523 4205
Forward-looking statements
This document may include forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995, such as statements that include, without limitation,
the words 'expect', 'estimate', 'project', 'anticipate', 'commit',
'believe', 'should', 'intend', 'will', 'plan', 'could',
'probability', 'risk', 'Value-at-Risk (VaR)', 'target', 'goal',
'objective', 'may', 'endeavour', 'outlook', 'optimistic',
'prospects' and similar expressions or variations on these
expressions. These statements concern or may affect future matters,
such as NatWest Group's future economic results, business plans and
strategies. In particular, this document includes expectations
regarding the fee income potential of the BaaS business and the
amount of NatWest Group investment in Vodeno Group and may include
forward-looking statements relating to NatWest Group plc in respect
of, but not limited to: its economic and political risks, its
regulatory capital position and related requirements, its financial
position, profitability and financial performance (including
financial, capital, cost savings and operational targets), the
implementation of its purpose-led strategy, its environmental,
social, governance and climate related targets, its access to
adequate sources of liquidity and funding, increasing competition
from new incumbents and disruptive technologies, the impact of the
Covid-19 pandemic, its exposure to third party risks, its ongoing
compliance with the UK ring-fencing regime and ensuring operational
continuity in resolution, its impairment losses and credit
exposures under certain specified scenarios, substantial regulation
and oversight, ongoing legal, regulatory and governmental actions
and investigations, the transition of LIBOR and IBOR rates to
alternative risk free rates and NatWest Group's exposure to
operational risk, conduct risk, cyber, data and IT risk, financial
crime risk, key person risk and credit rating risk. Forward-looking
statements are subject to a number of risks and uncertainties that
might cause actual results and performance to differ materially
from any expected future results or performance expressed or
implied by the forward-looking statements. Factors that could cause
or contribute to differences in current expectations include, but
are not limited to, future growth initiatives (including
acquisitions, joint ventures and strategic partnerships), the
outcome of legal, regulatory and governmental actions and
investigations, the level and extent of future impairments and
write-downs (including with respect to goodwill), legislative,
political, fiscal and regulatory developments, accounting
standards, competitive conditions, technological developments,
interest and exchange rate fluctuations, general economic and
political conditions, the impact of climate-related risks and the
transitioning to a net zero economy and the impact of the Covid-19
pandemic. These and other factors, risks and uncertainties that may
impact any forward-looking statement or NatWest Group plc's actual
results are discussed in NatWest Group plc's UK 2021 Annual Report
and Accounts (ARA), NatWest Group plc's Interim Results for Q1 2022
and H1 2022 and NatWest Group plc's filings with the US Securities
and Exchange Commission, including, but not limited to, NatWest
Group plc's most recent Annual Report on Form 20-F and Reports on
Form 6-K. The forward-looking statements contained in this document
speak only as of the date of this document and NatWest Group plc
does not assume or undertake any obligation or responsibility to
update any of the forward-looking statements contained in this
document, whether as a result of new information, future events or
otherwise, except to the extent legally required.
Legal Entity Identifier:
NatWest Group plc 2138005O9XJIJN4JPN90
National Westminster Bank Plc 213800IBT39XQ9C4CP71
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END
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